Nitgen & Company, Closed Investment Deal of US$38Million
▶ Capital increase with consideration and issuance of CB to the 3rd party, New Concept Capital (NCC) and Sound Hong Kong Ltd.(SHK)
▶ Entering fast-growing industry, Energy Business, with New Ocean Energy
leaping towards Energy oriented corporate by attracting a large investment into Nitgen & Company.
KOSDAQ listed corporate, Nitgen&Company (KOSDAQ stock code: 023430, Chairman: Billy So, CEO: David Woo) made a decision to increase capital with consideration and to issue corporate bonds to the 3rd parties, New Concept Capital (“NCC”, the largest shareholder of Nitgen) and Sound Hong Kong Ltd (“SHK”, a wholly-owned subsidiary of New Ocean Energy), in the amount of US$38million (about KW 43billion) on September 6, 2012.
SHK is a wholly-owned subsidiary of New Ocean Energy (HKEx stock code: 342), which is a leading energy distributor in Hong Kong and Southern China and it has already entered and marketed the Marine Oil Bunkering business in Hong Kong.
By investing a major part of this investment, Nitgen will diversify its business territory into a new energy business; as a result, Nitgen and New Ocean Energy, the parent company of SHK soon to be the 2nd largest shareholder, will be the strategic business partner in order to penetrate into the Marine Oil Bunkering business.
The Marine Oil Bunkering business is a high-growing energy business along the coastline,especially in Hong Kong and the Southern China. It is a direct refueling system to the fleets. Principally, New Ocean Energy is a major energy distribution player in Hong Kong and the Southern China, which has recently obtained the related licenses of oil bunkering business and has started the development of major oil storage infrastructure in Southern China coastline, where adds a geographical and cost-effective advantage to the business.
According to Billy So, chairman of Nitgen, stated “the new oil bunkering business is a highgrowth business that also has a strong market demand. This is the great business opportunity for Nitgen because our Hong Kong listed partner is already operating this business. By investing and entering this business simultaneously, we are expecting to see some profit in Q4 of this year.”
By retaining the large sum of the investment, Nitgen can reinforce the current business, Energy Saving, and penetrate into the new business of Marine Oil Bunkering; therefore, it has established the foundation to be the Eco Energy Corporate.
The share price of this capital increase is finalized at KW000 (TBD), without any discount applied. Because, the largest shareholder considers the current shareholders’ value and it also shows its management’s intention to lead the corporate value. The total shares would be increased from 35million shares to 70million shares and the allotment for the 3rd party will be held at least one year safeguard deposit.
Previously on June 26 this year, the 1st largest shareholder, NCC is the wholly-owned subsidiary of AV Concept Holds Limited which is also listed in Hong Kong Stock Market. It operates its business in Shanghai and Beijing of China, Singapore and Philippines for distributing Semiconductor and LED components to major semiconductor manufacturers.
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Information Request
Nitgen & Company: Lee Jong-kyu, deputy manager, Tel. + 82 2 513 2141
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